Retirement Plans

First-time homebuyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?

$10,000

An individual working part-time has a gross income of $5,000 for the year. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?

$5,000

Which of these is a true statement regarding survivor benefits under a qualified retirement plan? 1. Survivor benefits can only be waived with the written consent of a married employee's spouse 2. Survivor benefits CANNOT be waived with the written consent of a married employee's spouse 3. Survivor benefits are rarely included in small company plans 4. Survivor benefits do not apply to divorced employees

1. Survivor benefits can only be waived with the written consent of a married employee's spouse

Premature IRA distributions are subject to a penalty tax of

10%

Which of the following statements is TRUE if the owner of the IRA names their spouse as beneficiary, but then dies before any distributions are made? 1. Surrender charge is applied 2. The account can be rolled into the surviving spouse's IRA 3. Distributions will be received tax-free if surviving spouse is over age 59 1/2 4. Future distributions are payable to the owner's estate

2. The account can be rolled into the surviving spouse's IRA

Which of these statements about traditional individual retirement accounts is accurate? 1. 10% penalty is applied to withdrawals after age 59 1/2 2. Withdrawals are normally tax-free to the recipient 3. 10% penalty is applied to withdrawals prior to age 59 1/2 4. Contributions are not tax deductible

3. 10% penalty is applied to withdrawals prior to age 59 1/2

Which of the following situations would allow funds to be deposited into a rollover IRA? 1. An individual receives a $100,000 inheritance 2. A family receives $1,000,000 in a wrongful death lawsuit 3. An employee quits her job and receives $50,000 from her qualified plan 4. A policyowner surrenders his life insurance policy's $25,000 cash value

3. An employee quits her job and receives $50,000 from her qualified plan

Which of the following can be used to avoid the mandatory withholding tax on qualified plan distributions? 1. qualified plan waiver 2. Trustee-to-trustee transfer 3. Conduit IRA 4. 1035 exchange

3. Conduit IRA

According to the IRS, a company may NOT do which of the following in regards to funds in a qualified retirement plan? 1. Transfer the funds to a new custodian 2. Invest the funds in mutual funds 3. Transfer vested funds to terminated employees 4. Repossess the funds for business purposes

4. Repossess the funds for business purposes

According to ERISA regulations, a Summary Plan Description must be provided to a new plan member within ____ days of the member's eligibility date

90

Tim is retired and has recently separated from his wife. He receives benefits from a qualified retirement plan through his former employer. The plan's trustee has decided to split these benefit payments between Tim and his estranged wife. This decision is likely a violation of which IRS rule?

Alienation of benefits

A description of a qualified plan's insurance contract my be found in which ERISA reporting form?

Annual tern/report (Form 5500)

A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a

Profit-sharing plan

How are qualified Roth IRA distributions normally treated for tax purposes?

Received income tax-free

An employee welfare plan exempt from ERISA regulations would be

Church plans

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

The participating employee

An officer for a corporation takes out numerous unsecured loans from the company's qualified retirement plan. Which of these rules is the plan in violation of?

Exclusive benefit rule

What is another name for a Keogh plan?

HR 10 plan

Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?

If Tom's employment is terminated, 20% of funds could be forfeited

An employer that offers a qualified retirement plan to its employees is eligible to

Make tax-deductible contributions to the plan

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the

Marital deduction

A life insurance producer's underwriting duties may include

Seeking additional information requested by the insurance compnay

Contributions made by an employee to a qualified retirement plan are required to be

Subject to a vesting schedule